History of PIA

'Pakistan International Airlines', or 'PIA' for short, can trace its beginnings to the days when Pakistan was not an independent state. In 1946 Muhammad Ali Jinnah realized the need for an airline network for the forming country and called upon the help of an industrialist Mirza Ahmad Ispahani to develop a flag carrier for the nation. Meanwhile, an airline called 'Orient Airways', registered in Calcutta, was formed on 23 October 1946. Orient Airways began relief flights to the new nation and, soon after, it moved its operations to Karachi, where it began flights to Dhaka on June 7, 1954. In addition, the first two domestic routes in Pakistan were established, from Karachi to Lahore to Peshawar, and from Karachi to Quetta to Lahore.

The Government of Pakistan, realizing the operation was failing economically, proposed that Orient Airways merge into a new national airline. On 11 March 1955, Orient Airways merged with the governments proposed airline, becoming 'Pakistan International Airlines Corporation'. During the same year the airline opened its first international service, from Karachi to London Heathrow Airport via Cairo International Airport and Leonardo da Vinci Airport in Fiumicino, Italy, using the Lockheed L-1049C Super Constellation.

Introduction:
1. National airline operating Passenger and Cargo services. 2. It is the 16th largest airline in Asia 3. Covering eighty two Domestic and Foreign destinations. 4. Established in 1955, having vast experience in the airline industry of Pakistan with a large fleet of aircrafts. 5. The fleet size is forty-three. 6. A huge Corporation with 18,043 Employee

Main bases are

PRIMARY BASES Jinnah International Airport, Karachi, The Allama Iqbal International Airport, Lahore and the Islamabad International Airport, Islamabad/Rawalpindi

SECONDARY BASES Peshawar International Airport, Faisalabad International Airport, Quetta International Airport and Multan International Airport

HUMAN RESOURCE DEPARTMENTS IN PIA

INTRODUCTION
As Human resource is the most important element of any organization, therefore it has to perform certain personnel functions in its own capacity. Every organization must hire, train, pay, motivate, maintain and ultimately separate employees. Every organization has its peculiar administrative structure, which suits the function, objectives, strategies, rules and procedure of that organization. Administration is the collective activity directed towards the attainment of a specific goal. Administration and management are used interchangeably and have no distinction. In the strict sense, Administration is execution of pre-determined policies; while management is the determination, execution and evaluation of these policies. Thus administration is defined as determination, execution and

evaluation of policies. Administration/Human Resource Management is one of the most complex and challenging fields of endeavor.

Human Resource (HR) manager for that matter must be greatly concerned with the expectations of both employees and society in general. Society at large proclaimed its human resources to have vital needs that move beyond a work force status. The Pakistan International Airlines Corporation (PIAC) has an Administration department, which involves the organization and management of man and material in order to accomplish its goals. Administration Manager is the head of the Administration department; where as the head of the overall Administration is GM HR of the region. The HR Manager is directly under the control of GM of the respective region.

ESTABLISHMENT OF HR DEPARTEMENT Initially from the establishment of PIA all the key HR functions are perform by administration, later on realizing the latest trends of formal human resource department was developed in early 2000. Prior to this all HR functions are performed under administrative manual, later on it was reviewed as HR manual. Overall structure remained the same except some minor changes. Under the revised HR manual management training officers( MTO) were hired instead of simple graduates. FUNCTIONS OF THE HR DEPARTEMENT
The Administration/HR department in PIA is concerned with the following functions. 1. The structuring of individuals and functions in productive relationship is carried out by the HR department, in the form of organization of rules, procedures, functions and human resources. 2. The HR department of PIA manages the personnel and is concerned with the direction of these individuals and functions to achieve ends previously determined. 3. The techniques and process of working and the interrelationship of various functions are determined by the HR department in PIA

4. The HR Dept: in PIA provides the tools and material with the help of which the operational work is carried out. This includes pens, ink, computers, papers, files, cabin, furniture, air-conditioner etc.

5. The HR dept: in PIA also carry out the investigations and inquiries of any office employee violating the rules and regulations, indiscipline and misuse of his/her authority etc.

6. The arrangements for infrastructure like offices support services and the HR department maintains physical facilities for the human resources. The Administration of PIA through the maintenance of security staff ensures the security of the office, building, furniture, fixture and supplies etc.

7. The uninterrupted communication and the maintenance of the means of communication is the responsibility of the HR department. It ensures the proper co-ordination among the employees, management, rules, procedures and functions of different departments.

Personnel (HRM) functions of the HR Department:

PIA being one of the largest organization of the country is also absorbs graduates from different parts of the country. Both for its managerial and non- managerial positions, posts are advertised with the requirements mentioned through newspapers and also through it website. In response a bank of application is formed and after the initial screening a test is given and the top scorers are interviewed for further refining of the selection process. After physical examination and approval from the competent authority, offer for appointment is given to the candidates. Those selected are given an orientation and then their positions are confirmed. Once selected, the employees are given different trainings from time to time by PTC (PIA Training Center) to enhance their skills so that they better perform their existing work and are prepared for future work. A complete employee record is maintained and every employee is assigned a P- number

The benefits are in the form of salary and allowance, with medical facilities and fixed free tickets. An ACR is maintained for the performance appraisal which also provides basis for promotion. Discipline is maintained any for any violation show cause notice and explanation are called. The age of retirement in PIAC is the completion of 25 years of service or attaining the age of sixty. The Administration Dept maintains the record of each and every employee of its home station, which after the retirement of employee is sealed and stored.

INCEPTION
Corporate

Vision:

To be a World Class Airline exceeding Customer Expectations through Dedicated Employees Committed to Excellence.

Corporate Mission: As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern Commercial concepts and Capable of Competing with the Best in the International as well as Domestic markets. Corporate Values:
y y y y y y y Customer Expectations(Convenience, Care and Competitive tariff) Service(Personalized and Courteous) Innovation(Cherishing new ideas, translating into actions) Reliability (Loyalty and Consistency) Safety(Passengers, Employees, Environment and Health) Cohesiveness(Respect for individuals and Effective Communication) Integrity(Business Ethics, Accountability and Transparency)

Job creation in PIA mostly jobs are c Recruitment and Selection Procedures
Recruitment and Selection:
Recruitment is the discovery of the potential applicants for actual or anticipated positions. The vacancies are created after the approval of the finance department. The PIA recruitment and selection procedures involve the following: Recruitment Policy:

The recruitment policy given the following conditions for recruitment: The age limits for the recruits are between 18-26 The educational qualifications of the employee. Officers (Executive Category) Master Degree /MBA/MPA /BBA(honors)

(Any recognized University by Federal Govt.) Assistant Officers/below Category Matriculation to B.A./B.Sc

Sources of Recruitment:
Whenever a vacant position is available, the head of department make reviews of the existing personnel and carry out a search within the organization for suitable persons before trying the outside sources. But if a person with the required qualifications for a given job is not available, fresh recruitment is made. MTOs are hired after certain interval whereas air hostess and other staff is hired after 1 or 11/2 years.no recruitments were made from 1997 to 2004.

Techniques of Recruitment:
The vacant posts are advertised through the local and national newspapers and applications are invited with the job specification and description showing the job requirements and eligibility.

Applications are invited on the prescribed Form available (free of cost) in PIA Recruitment & Placement Office at Karachi and in PIA Offices at other stations and also on PIA website. www.piac.com.pk. Vacancies are announced on all the local news paper and the PIA official website.

Eligibility Criteria:
1) Qualification The qualification that is compulsory for applying in PIA is started from intermediate degree and end up at to graduate degree and this very from job to job. As one of the employees Amir told us in his interview. PIA have dropped the required level of education from a graduate degree to an intermediate degree

2) Age Requirement Requirement for the age is also vary from post to post and its most probably depend upon the experience required for a specific job. But generally the age requirement for PIA is ranging from 19 to 24. The age barrier has also shifted upwards, meaning that a candidate must be a minimum of 19 years old and a maximum of 24, said Mr. Amir

3) Physical Requirement Physical requirement for the candidate of PIA is also differ from gender to gender. The minimum required height is 5 feet, 6 inches for men and 5 feet, 2 inches for women, with proportionate weight.

Selection Procedures:
The selection process is concerned with the securing relevant information regarding the applicant. The selection procedure uses the screening devices so that the most efficient and professional employees should be available to the organization. Candidates, who want to join PIA, go through a strict selection procedure before being allowed to become the part of the PIA. Normally three types of the tests are conducted by PIA for selecting a candidate. Following are the tests that are conducted

The selection procedure in PIAC is based upon three important principles, namely: y Competence y Equality of Opportunities y Neutrality The procedure includes the following steps 1. Application Blank: Each applicant blank provided by the Admin. Department. The application form has to be filled by the applicant in his own handwriting submitted to the admin dept before a specific date. The format of the application blank is given in the appendix. In the application, the personal data, educational qualifications and experience etc. of the applicant is give. 2. Written Test: These applications are scrutinized and the candidates passing through the security are called for a written test. Now a day this selection tests are administered by NTS. The test s conducted by a Board from the Head Office with the assistance of the Administration department at the concerned stations. 3. Interview: Those qualifying the written test are called for an interview administered by the selection board assisted by the administration department. 4. Physical Examination: There is usually a formal physical examination of the candidates. Another requirement is the submission of a formal Medical Fitness Certificate from a doctor. 5. Approval by the Competent Authority: After going through the whole process of selection, the list of recommended applicants is sent to the competent authority for approval. 6. Offer of Appointment: After the approval, the Administration Department notifies the decision to the candidates through a letter of appointment.

2) Grooming Test
If candidate selected in the first interview, the hopefuls take a grooming test. Here, all the candidates present themselves in a manner, both physical and behavioral, befitting the job while women s make-up skills are also checked.

Once the grooming test is cleared, the candidates general knowledge is tested in written and oral tests. These tests are some times based on brainstorming. The selected candidates attend an intensive three to four week training course which is organized by the airline since there are currently no institutes in Pakistan offering training courses for flight attendants.

During this period, the selected candidates are trained to handle emergency situations such as evacuation and hijacking. They are also given basic training in first aid and are taught to deal with problematic passengers.

Orientation
After appointment, the employees go through an orientation period i.e. Probation, for MBA/MPA/BBA/BPA (honors) as executive the period is 5 weeks. And for employees of under-officer class, the period is 3-6 months. The orientation period depends on job specificatons, for example the orientation period of MTOs is 1 month.

Confirmation
After successful completion of the orientation period, the employees apply for confirmation to a competent authority.

Basic training: The basic training institute for all the employs is based in Karachi head office. After final selection the selected candidates go through different training sessions of various durations before actually starting the jobs. Pilots( 6 to 8 months) Enginnering wing( 6 months) Crew staff(8 weeks)

Training and Development

Steps For Training And Development At PIA
1 PIA sends its employees out of country for training 2 PIA trains its employees on the job and off the job as well. 3 By recruiting untrained candidates and train them according to their own needs. 4 Safety training is also provided to the employees

Methods
Accordion to Gallbraith, We can get the larger part of our output not form more capital investment but from investments brought about by improvemen. PIAC has its own training center, known as PTC, under the control of the administration department. It includes. 1.Training Appraisal After training, the trainee performance is appraised by the immediate supervisor. The immediate supervisor in PIA evaluates trainee performance on trainees assignments tests and on the job work .
,

Appraisal Shows Trainees:

1 Ability/Desire to learn new things. 2 Knowledge. 3 Leadership qualities. 4 Quality Consciousnesses. 5 Disciplines. 6 Attitude. 7 Flexibility. 8 Personality. 9 Strengths. 10 Weakness.

On the job training On the job training is given to employees already existing in PIAC. It is given to employee to update the employees knowledge of various procedures, methods, rules and regulation etc. and familiarize the employees with the changes and advancements taking place from time to time. One of the methods of no-thejob training includes job rotation. Job Rotation As an important method of training, it enables the employees to work at different positions and get an overall picture of the working of PIAC. Pre-Job training

The pre-job training is imparted to the various categories of employees before they join the organization and assume responsibility. The pre-job training to the flight stewards and hostesses for specific period.

THE PIA TRAINING CENTRE

The PIA raining center at Karachi is possible the only airline training establishment where comprehensive instruction in all major field is given under one roof. PIA has been training its pilots, mechanics, technicians, traffic / sales staff and cabin crew since 1956, but it wasnt until 1960 that all training facilities were amalgamated at one centralized place and expended to train personnel in all fields of the airline. In October 1975, the training center moved to its new three stories specious premises near the Head Office where it has been able to add more attaching aids. Training facilities available within the airline also include flight Simulators for basic and recurrent training of pilots and other operational crew. In 1992, PIA introduced computer based training (CBT) facility; containing courses are for specific aircraft for training its engineering cabin and cockpit crew. Courses are conducted according to the requirements of the industry and the standards laid down by the civil aviation authority (CAA) of the United States and the international Civil aviation organization (ICAO) al courses are also approved by the Civil Aviation Authority of Pakistan. Deferent courses and training facilities are also offered to public and private sector organization and individuals within Pakistan. Basic and advanced raining facilities are also provided to foreign carriers, and courses in specialized fields are conducted at the center as well as location abroad. Over 40 airlines from Asia, Africa and Europe have used their facilities for the training of their pilots, maintenance engineers and other disciplines. The total number of such trainees exceeds 6,000. Training is also being conducted for African of scholarships granted by the ministry of foreign affairs, Government of Pakistan. In 1994, PIA training center introduced advanced course in Quality management TQM and ISO-9000 certification. It is planned to develop PTC to receive an ISO-9000 certification in the next one-year.

ETHICAL ISSUES

ORGANIZATION STRUCTURE PIAC ISLAMABAD OFFICE 3.3 MANAGEMENT OF PIAC

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Ticket Officer Manager

Admin Officer DISTRICT

MANAGER

Passenger Sales Manager Finance Manager Public Relation Manager Manager Tours Promotion Cargo Sales Manager Managing Director

ORGANIZATIONAL DEVELOPMENT

MENTAINANCE Compensation:
PIA follows a proper compensation plan for its employees As said by one of the employee; Principles of Compensation Discussed Compensation will be perceived as fair if it is comprised of a system of components developed to maintain internal and external equity . Compensation includes: 1 Base Pay 1 Commissions 2 Overtime Pay 3 Bonuses, Profit Sharing, Merit Pay

4 Stock Options 5 Travel/Meal/Housing Allowance 6 Benefits including: dental insurance, medical, vacation, leaves, retirement, taxes...

PROMOTION/TRANSFER: A promotion is an upward advancement in the organization to a position, which commands higher opportunities, greater authority, better service conditions and a higher rank. All the promotions in PIAC are made on the basis of merit of each case, and not by the virtue of seniority alone. Transfer to different jobs either to fill definite vacancies or to perform assignments to develop individual are made. The Head office in accordance with the promotion makes promotion and transfer to all categories and grades and transfer polices of PIAC. The HR dept. helps in co-ordination these activities of transfer and promotions. RETIREMENT/PENSIONS: The age of retirement is completion of 25 year of service or attaining the age of sixty unless they are otherwise not fit for wok and the employee can opt for pension. Records of these employee are maintained by the Admin, department, which after the retirement of the employees is sealed and stored. CONTROL HR department exercises control by two ways upon the activities of various departments and employees. These are through internal and external auditing and controlled budgeting. LEAVES Leave is temporary absence from duty. All application for leave is addressed to the HR manager through proper channel. An employee cannot claim leave as a matter of right and the competent authority at its discretion may refuse of revoke any kind of leave. Leaves are applied fro and sanctioned in the terms of days. The following types of leaves provision occur in PIAC. i. Casual Leave All employees are entitled to 10 days of causal leave in a calendar year. The maximum number of casual leaves at a time is 3 days. ii. Privileged Leave Privilege leave may be on the following terms, Fully Pay: The maximum period of leave on full pay, granted at one time is 30 days for service less than 10 years, 35 days for service over 10 year in a year. The fifteen days of this leave are to be availed otherwise collapsed. iii. Sick leave

Sick leaves may be granted up to a maximum of 12 days to an employee. Iv. Disability leave Disability lave may be granted up to a maximum of 180 days to a person, disabled by injury, ailment or disease occurred in the course or in consequence of duty or on official position. v. Ex. Pakistan leave Leaves without pay may be granted to employees, who proceed to abroad during the leave for a period of one week to 3 years. PASSAGES The passages or free ticket are given to the employees by the HR Department maintaining its records.

a. Human Resource budget Different departments analyses working loads of the employees and according to it, a budget is made and the work load of these departments are maintained as per the budget, through new induction transfers etc. b. Human Resource Management Human resource management is to utilize the human resource according to the requirement. The Pakistan international Airlines has the basic objective of Utilization of human resources To properly train them as to get an optimal level. Legal Matters PIAC has a legal division, supervised and operated by the admin. Dept. matters relating to rules and regulations. By laws and state and international laws are dealt with by this division. Security The security division of the PIAC has a very important role. It provides safety and security to the infrastructure, operations, assets and fixtures and documents etc. It also ensures the security of the personnel of the PIAC. Industrial Relations Industrial relations refer to a dynamic and developing concept, which is not limited to a complex of relations between trade Unions and management but also refer to the general network of relationships normally obtained between employees and employees. It is considered very important for any industrial / service

organization to have maximum satisfied employees. A workable atmosphere can only be assured through participative management in an organization, the administration department advises the management on the existing labor laws and ensures the strict adherence to it. It plays the role of mediator between the management and the employees union in case of any deputes between the management it maintains cordial and harmonious atmosphere in the organization. According to the industrial relation ordinance 1969, 50 or more than 50 employees are permitted to form a union. In case of more than one union election are held to elect labor leaders under the national industrial relations commission (NIRG). In case of any disputes between the management and the labor, both condole NIRC. In PIA a referendum is held under 22 and 23-IRO.
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At the head office there is a CBA, while at the station level, it is a local chapter. 6.8 CBA (Collective Bargaining Agent) CBA being the representative of the employees, put their demands to management, which is called the charter of demand. In case of any dispute, the management and CBA negotiate of rainy settlement. The CBA ash the director access to the mange mint i.e. G.M. or admin manager in case of any problem. If the demands of the CBA are approved then minutes are issued by the admin. dept. and are approved G.M. or IRO action. Rules for CBA Any employee of pay-group I-IV can compete for CBA. At the same time, he is the regular employee and has to abide by the rules and regulation. The CBA tenure is 2 years. PIASSA: PIA senior staff association Industrial relation officer (IRO) In every department there is an IRO to maintain cordial relations between management and Union Duties and Responsibilities of the IRO 1. To advise the department Head/G.M/Sectional Heads / officer on the provision of labor laws which are applicable in their areas of activity. 2. To regulate staff interviews with the department heads of resolving employees grievances. 3. To assist line management in maintaining congenial and harmonious atmosphere in the pursuits of managements directives and policies. 4. To carryout regular inspections and submit reports on specified proofreads to highlight, whether breach of any applicable laws is involved and take remedial action. 5.

To keep contact with all the employees at all levels in the department to know their reactions / feelings of management policies and decision taken from time to time and keep the department authorities and industrial division informed of the same, LEADERSHIP STYLE Leading is the process of influencing others to accomplish specified objective. It consists of interpersonal influence, exercised in a situation and directed by means of communication process towards the attainment of a specified goal or goals. The leader of a department section or the whole organization has the dual objective, representing the interests, objectives and functions of the management and achievement of organizational goals and objectives and getting subordinates to work for the attainment of theses goals, and the safeguarding of the interests of he subordinates against the higher management. The leadership style means, the behavior of the leaders what he or she does what he or she emphasizes, and how he or she deals with subordinates, in PIA, the leadership styles is autocratic, who tend to make unilateral decisions, dictate work methods. Limit workers knowledge about goals to just the next step to be performed and some time given feed back that is punitive. In PIAC, the employees have very little say in decision making and no participative management is involved in the policy formulation. Here we must point out the exception that sometimes the CBAS influences the decision making through their coercive power.

PROBLEMS AND SUGGESTIONS AB0UT PIAC

8.1 PROBLEMS These problems are .
Employees were not satisfied about the Promotion procedure and merit was not encouraged. Chairman of PIA should always be appointed from with in the organization. 4. Passengers were not satisfied about the refund process as it was time consuming. 5. PIA have highest employee ratio to per airplane. Which is a huge financial burden on PIA. 6. Complaint of Employees as they were not properly facilitated comparing to the other airlines.

PIA should adopt transparent policy that employees should be promoted on merit basis. And Chairman of PIA should be appointed from with in the organization. Union should support it, it will motivate the employees and PIA will grow in profit.

PIA should upgrade its fleet as its causing the airline higher operating cost and PIA is incurring loss .PIA should purchase new Airplane with twin engines these will reduce the operating cost of PIA. Airline should focus on the customers satisfaction, refund process should be quick so that customer remains loyal to brand. 5.

PIA should not induct new employees till the time they are needed on the basis of my personal observation at Rawalpindi station I have seen that a task which can be performed by person PIA had 3 employees for that. 6. PIA should give bonus to the industrious and competent employees. Management should hire the services of specialized IT personnel for their system development and up gradation on time. 10. There should be clear and even distribution of work and only qualified person should be appointed on jobs. 11. There should be improved service standards and that should focus on quality. 12. PIA should offer its services of reservation and seat confirmation with by SMS and flight confirmation message should also be sent via SMS to the passenger. 13. PIA should give more incentives to its frequent flyer as it will generate more brand loyalty by giving better incentives to the customers.